Credit Repair and the Law
Credit
repair is totally legal, but some companies are not. Our fraud
detection guidelines are designed to help you tell the difference.
Fraudulent credit repair companies have long been the target of FTC
investigations, culminating in Project Credit Despair which snared
20 credit repair companies in February 2006.
The
Federal Trade Commission
We
proudly endorse the opinions of the Federal Trade Commission (FTC),
particularly in regard to their views concerning credit repair
agencies. The FTC is responsible for enforcing consumer protection
laws in the United States. In its capacity, the FTC offers a number
of suggestions and warnings to consumers regarding credit repair
organizations.
The
FTC's concerns address the unethical individuals who have taken
advantage of the rising demand of credit restoration by posing as
credit repair companies on the Internet or via telemarketing or
other advertising, making promises they either couldn't keep or
never intended to keep, and/or charging fees up-front and then
vanishing after providing minimal and inadequate services - if any
services at all. Several of these agencies encourage consumers to
use unethical and even illegal tactics to clean their credit
reports.
In an
attempt to discourage these unscrupulous credit repair opportunists,
the government has imposed strict regulations on credit repair
agencies. Overall, these regulations are a positive step towards
protecting consumers from disreputable credit repair agencies.
To
avoid their scams, you, as a potential consumer, should be wary of
any credit repair agency that won't fully identify who they are
(including a verifiable identity), or demand large fees in advance
of services rendered. Consumers should avoid credit repair agencies
that guarantee credit report results, encourage you to create a new
credit file using an Employer Identification Number (EIN) or
guarantee the ability to remove a bankruptcy from your credit
report. Their methods are usually unethical and/or even illegal and
may subject you to criminal liability.
If you
believe that you have been the victim of unethical, misleading
and/or deceptive behavior by a credit repair agency or law firm
providing credit restoration services in an attempt to restore your
credit, you should report them to the FTC immediately. Your
cooperation in this regard will assist the FTC to find and eliminate
the unscrupulous predators in an effort to provide a safer,
fraud-free experience for everyone.
We believe timely information and knowledge breeds success and
insures greater client satisfaction. If you have any questions about
professional credit restoration, including if it is right for you,
contact us.
Beware of credit repair services that request fees in advance
We never charge you in advance for our credit repair services. We
charge you only after the initial setup, consultation, and credit
report analysis has been completed and the work performed.
Avoid any company that
wants you to pay for credit repair services before they provide any
services. It is against the law.
Beware of credit repair services that don't disclose your rights
Consumers have the right to attempt credit
repair on their own. We offer our affordable services to those
clients who prefer having professionals managing their credit
disputes and creditor interventions. Many of our clients actually
tried to repair their own credit at some point in the past before
deciding to hire us to work on their behalf. Effective credit repair
can be very time consuming, especially if you're not familiar with
how to do it the right way.
Beware of credit repair services that advocate "new" identities
It is unlawful to create a "new" identity by
applying for an Employer Identification Number (EIN) to replace
one's Social Security Number. File segregation is a serious crime
that can result in fines or imprisonment. If you follow illegal
advice and commit fraud, you may be subject to criminal prosecution.
Beware of credit repair firms that make outrageous claims
Claims such as "perfect credit in 30 days" or
“your scored raised 100 points guaranteed” can be misleading. It’s
also illegal for any company to advertise unbelievable claims such
as these. Usually this is an automatic red flag for a scam artist.
If it sounds too good to be true, it usually is.
Beware of companies that imply FTC endorsement
The FTC does not endorse any business. If a
credit repair organization implies FTC endorsement, they are lying
to you. Don’t fall for it, or you’ll risk being taken advantage of.
